Info Report Check
Submission incomplete:
1: The PP/DOE are requested to complete all sections of the PDD related to the description of the project activity as per PS version 1 paragraphs 30-34.
i)Page 31 of the PDD states that “The amount of electricity generated is measured through electricity meters at two points: one electricity meter controlled by TICO (electricity seller) and an electricity meter controlled by the VRA (the electricity buyer)”. The PP/DOE is requested to further clarify whether the project activity is supplying electricity to the grid or to identified third party (in this case VRA) .
ii)The PP/DOE is requested to provide information about the pre-project scenario ;in particular; whether the single cycle power plant of 224 MW was connected to the grid.
iii) The PP/DOE is requested to clearly state a) the current implementation status of the project activity b) when the modification of turbines from dual fuel (LCO+LDO) to a tri-fuel capability (LCO+LDO+NG) was done (Please refer to Page 16 of the Validation Report).


2: The PP/DOE are requested to describe in the PDD how each applicability condition of the methodology(ies) is met as per PS version 1 paragraph 38.
1. The DOE is requested to provide further information on how the project met the first applicability criteria considering that the turbines had been retrofitted from dual fuel to tri fuel capability.
2. Further clarification is required on the fuel mix in the pre-project scenario and the DOE shall clarify how it validated that the fuel mix would remain similar after the implementation of the project activity.(Applicability No 3 and 4 of the methodology).


3: The PP/DOE are requested to present barrier analysis in the PDD as per PS version 1 paragraphs 48 (b) and 49 (a).
Guidelines for objective demonstration and assessment of barriers” paragraph 4 states that While demonstrating barriers related to the lack of access to capital, information should include nature of company, organization and its ownership and, financial information. The DOE is requested to provide information on the same. In doing so the PP/DOE shall provide information on the ownership of this project activity , means of financing , revenue earned and sharing from the project activity

4: The PP/DOE are requested to list and justify in the PDD the data and parameters used to calculate the emission reductions as per PS version 1 paragraphs 52 and 53.
The DOE shall clarify why the weights for OM and BM have been taken at 0.75 and 0.25 respectively for this type of project activity.

5: The DOE is requested to confirm the appropriateness of the underlying assumptions and the accuracy of the financial calculations carried out for the investment analysis as per VVS version 2 paragraphs 120 and 123 (c).
1.The DOE is requested to confirm why investment analysis is done for 342 MW Combined cycle power plant and not for the newly installed 118 MW Power plant.

2. The DOE is requested to provide further information on a) the fuel cost in particular why fuel costs (NG and LCO) have been taken into account since they are related to the existing single cycle power plant .b) Tariff applicable for the project activity.

3. The Validation Report doesnot contain information on the suitability of the input parameters relevant for the calculation of the IRR for the CDM project activity. The DOE is requested to provide information on how it validated that the parameters are a) valid and applicable during investment decision b)Source of the input parameters and c) means of cross checking. Refer to para 127 of the VVS version 07.

4.The validation report does not provide any information on how these parameters have been validated and crosschecked:
(i) Natural gas heat rate and LCO heat rate;
(ii) Gas price and it’s applicability for the CDM project activity.
(iii) O&M cost (i.e Foreign Fixed O&M cost for natural gas and its components, Local Fixed O&M cost for natural gas and its components, Natural gas variable cost and its components, Natural gas LTSA cost);
(iv) Revenue (i.e. Natural gas capacity charge, Foreign Fixed O&M charge for natural gas, Local Fixed O&M charge for natural gas, Maintenance charge for natural gas and Foreign Variable O&M charge);
(v) Tax rate;
(vi) Inflation profile (i.e. PPI USA, CPI USA, PPI Ghana, LTSA and real);
(vii) Interest rate of term loan (3.36%);
(viii) Debt/equity ratio;
Ix ) financing costs and financing fees, furthermore, as the source is not clear and whether it was available at the time of the investment decision; (iii) depreciation rate.
x) Why the increased cost of USD 440 million has been taken into consideration and not the amount of 418 milion USD which was applicable during the investment decision.


6: The DOE is requested to include information on how it has validated sensitivity analysis of the investment analysis as per VVS version 2 paragraph 120 (e).
The DOE shall provide information whether the revenue earned by the Project Proponent (TICO) from the increased electricity due to the combined cycle power project will be fixed within the whole assessment period of the investment analysis calculation.